After declining for eight consecutive weeks, the Dow Jones Industrial Average rebounded sharply last week to the end. higher by 6.2%. However, Bitcoin (BTC) wis unable to mimic performance of the U.S. equity market and threatened to be painted a red candle for the ninth week in a row.
The positive sign is that the Bitcoin whale has bought a market correction. Glassnode data shows that the number of Bitcoin whales wallet with a balance of 10,000 Bitcoin or more has risen to its highest level since February 2021. accumulated in the whale’s purse shows that the long -term outlook for Bitcoin remains bullish.
The Blockware solution highlights that the Mayer Multiple metric that compares the 200-day moving average to its current price has long been “approaching some of the lowest readings on record.” The company said several other indicators also recommend it Bitcoin is trying to make a foundation.
If Bitcoin starts recovering in a short period of time, certain altcoins will follow higher. Let’s study the chart of the top 5 cryptocurrencies that could lead to a relief rally.
BTC/USDT
Bitcoin remains stuck between the downward trend line and support at $ 28,630. The Bears pulled the price below $ 28,630 on May 26 and May 27 but were unable to hold lower levels. This caused a rebound on 28 May.
The bulls will now try to push the price above the downward trend line and challenge the 20-day exponential moving average ($ 30,538). If they are successful, the BTC/USDT pair could gain momentum and the rally could reach a 50 -day high ($ 35,181).
The positive difference in the relative strength index (RSI) suggests that the bearish momentum may be weakening and the rally may be on the edge.
On the other hand, if the price falls from the overhead resistance, the bear will again try to pull the pair below $ 28,630. If possible, the pair will complete a bearish downward triangle pattern, which has a target range at $ 24,601.
The 20-EMA and 50-SMA on the 4-hour chart are flat and the RSI is just above the midpoint, suggesting a balance between supply and demand.
If the bulls drive the price above the downtrend line, the negative downward triangle pattern will be negated. That can lead to short -term pressure because short -term bears can close positions. That could clear the way for a rally for 200-highs.
Conversely, the bear will come out on top if the price goes down and down below $ 28,630. This could result in a re -test of vital support at $ 26,700.
ETH/USDT
Ethereum (ETH) is already on a downward trend but the bulls are trying to stop the decline at the important $ 1,700 support. The price rebounded from this support on May 28 and the bulls tried to build on the recovery on May 29.
The RSI forms a bullish divergence, indicating that the downward trend may be weakening. If the bulls push the price above the 20 -day EMA ($ 2,036), the ETH / USDT pair could rise to overhead resistance at $ 2,159. The Bears are expected to defend this level aggressively. If the price falls from this resistance, the pair could remain between $ 2,159 and $ 1,700 for a few days.
On the other hand, if the price drops from the current level or the 20 -day EMA, the bear will try to sink the pair below $ 1,700. If successful, the pair could continue its downward trend with the next major support at $ 1,300.
The bounce from the $ 1,700 support has reached the EMA 20 where the bears can make a strong defense. If the price falls from this level, it could increase the prospect of a break below $ 1,700. If that happens, the downward trend could continue.
Conversely, if the bulls push the price above the 20-EMA, the pair could rise to the 50-SMA. This level can again act as resistance but if the bulls overcome this obstacle, the pair can rally to psychological resistance at $ 2,000.
XTZ/USDT
Tezos (XTZ) is consolidating in the downtrend. Although the bulls pushed the price above the 20 -day EMA ($ 2) on May 24, they could not hold a recovery. The price fell again below the 20 -day EMA on May 26th.
The 20 -day EMA is flat and the RSI is above 46, indicating that selling pressure has eased. If the bulls push the price above the 20 -day EMA, the XTZ/USDT pair could rally to the 50 -day SMA ($ 2.45). If this resistance also gives way, buyers will try to push the price above the uptrend line.
In contrast, if the price falls from the current level, it would suggest that the bears continue to defend the 20 -day EMA. The seller will then try to sink the pair below $ 1.75 which could open the door to fall to $ 1.64.
The 4-hour chart shows a declined recovery from the 200-SMA but the pair is bouncing off the uptrend line. The bulls have pushed the price above the 50-SMA and will now try to break the overhead hurdle in the 200-SMA. If they can do it, it would suggest a short-term up-go start.
Alternatively, if the price falls from the current level or 200-SMA, the pair may go down to the uptrend line. A break and close below this support could pull the price down to $ 1.61.
related: Bitcoin to set a new 9-week record lost streak with the BTC price down 22% in May
KCS/USDT
KuCoin Token (KCS) broke above the 20 -day EMA ($ 15.61) on May 20 but the bulls were unable to push the price above the 50 -day SMA ($ 17.19). This may tempt short -term traders to make profits, pulling the price below its 20 -day EMA on May 26th.
The Bears were unable to build profits and keep the price below the 20 -day EMA, which indicates a strong buy by the bulls at a lower level. Buyers have pushed the price above its 20 -day EMA on May 29th.
If the bull holds the price above the 20 -day EMA, the chances of a break above the 50 -day SMA increase. If that happens, the KCS/USDT pair could rally to $ 18.44 and later to the 200 -day high ($ 19.63).
Contrary to this assumption, if the price falls from the current level, it will suggest that traders sell in a rally. A break and close below $ 14.92 could open the door for a further decline to $ 12.90.
The pair has suffered stiff resistance at the 200-SMA but a shallow correction indicates that the bulls are buying slightly. If the bulls push the price above the 200-SMA, the next stop could be $ 17.14. A break and close above this level can start the next leg up-move.
Conversely, if the price falls from the overhead resistance, the bear may pull the pair down to the 38.2% Fibonacci retracement level at $ 14.20 and then to the 50% retracement level at $ 13.30. This zone can also be a strong support.
AAVE/USDT
AAVE rallied to the 20 -day EMA ($ 101) on May 23 but the bulls couldn’t push the price above it. This shows that the bears continue to defend these levels aggressively but the small positive is that buyers are not giving up.
If the price rises and breaks above the 20 -day EMA, it will indicate the start of a stronger relief rally. The AAVE/USDT pair can then rally to a 50-day high ($ 132) where the bears can again mount a strong defense.
Or, if the price drops from its current level or the 20 -day EMA and drops below $ 89, short -term bulls that can buy at a lower level may close the position. That could pull the price down to $ 79 and later to $ 64.
The 4 -hour chart shows that the pair has been oscillating between $ 90 and $ 110 for some time. The 20-EMA and 50-SMA are flattish and the RSI is just above the midpoint, suggesting a balance between supply and demand.
This balance can skew buyers if they push and keep the price above $ 110. If they do, the pair could rally to $ 130 and then $ 143. Conversely, if the price drops below $ 90, the bear will get the upper hand. The pair then went down to $ 80 and later to $ 70.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move includes risks, you should do your own research when making a decision.
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